Formulation and Implementation are often

Strategic Managementinvolves long-term, future-oriented,complex decision making requires considerable resources participation at all levels of an organization

Top management is essential

Specifics

I. Strategy Formulation

1. Developing a business vision/mission

Mission = enduring statements of purpose thatdistinguish one business from other firms.

2. Establishing long-term objectives

Specific results - more than one year. Challenging, measurable, reasonable, clear. Established for overall corporation and eachdivision

3. Identifying external opportunities and threats...could

benefit or harm an organization in the future. Macro Environment economic, social, cultural, demographic, environmental,political, legal, governmental, and technological largely beyond the control of the organization

Micro Environment Industry Competitive trends & events

4. Determining internal strengths and

weaknesses Controllable activities within an organizationthat are performed especially well or poorly. Competencies (skills) Functional activities are areas where strengthsor weaknesses arise.

Strategy Formulation Cont

5. Generate and choose corporate strategies

Means by which long-term objectives will beachieved.

II. Strategy Implementation

Establish annual objectives

Short-term milestones that organizations must achieve to reachlong-term objectives. Measurable and established at corporate, business, andfunctional levels.